Providing Liquidity in a High-Frequency World: Trading Obligations and Privileges of Market Makers and a Private Right of Action

Dolgopolov, Stanislav

doi:10.2139/ssrn.2032134

Abstract

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Providing Liquidity in a High-Frequency World: Trading Obligations and Privileges of Market Makers and a Private Right of Action

Stanislav Dolgopolov

UCLA School of Law

September 14, 2012

Brooklyn Journal of Corporate, Financial, & Commercial Law (Forthcoming)

Abstract:
This Article analyzes the reach of a private right of action under federal securities law for violations of trading obligations and abuses of trading privileges by market makers in today’s rapidly evolving securities markets. The evolution of the applicable case law is traced, and potential approaches to a coherent theory of a private right of action are considered. The Article also discusses the significance of the changing economics and institutional framework of providing liquidity in securities markets and related regulatory debates.

Number of Pages in PDF File: 83

Keywords: Market Makers, Trading Obligations and Privileges, Private Right of Action, Securities Regulation, High-Frequency Trading

JEL Classification: G28, K22

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Date posted: April 1, 2012 ; Last revised: September 16, 2012

Suggested Citation

Dolgopolov, Stanislav, Providing Liquidity in a High-Frequency World: Trading Obligations and Privileges of Market Makers and a Private Right of Action (September 14, 2012). Brooklyn Journal of Corporate, Financial, & Commercial Law (Forthcoming). Available at SSRN: http://ssrn.com/abstract=2032134 or http://dx.doi.org/10.2139/ssrn.2032134

Contact Information

Stanislav Dolgopolov (Contact Author)

UCLA School of Law ( email )

385 Charles E. Young Drive East
Los Angeles, CA 90095-1476
United States
(310) 206-5348 (Phone)